Submitting Material Event Notices to the CDINet System

 

On March 24, 1997, the Municipal Securities Rulemaking Board implemented the Continuing Disclosure Information, or CDINet, System of its Municipal Securities Information Library®, or MSIL®, system.^*  CDINet is designed to accept and disseminate material events notices affecting municipal securities that are submitted by issuers or their agents (“submitters”) pursuant to the secondary market disclosure requirements of SEC Rule15c2-12.  The material events listed in that rule are:

 

 1.            Principal and interest payment delinquencies;

 2.            Non-Payment related defaults;

 3.            Unscheduled draws on debt service reserves reflecting financial difficulties;

 4.            Unscheduled draws on credit enhancements reflecting financial difficulties;

 5.            Substitution of credit or liquidity providers, or their failure to perform;

 6.            Adverse tax opinions or events affecting the tax-exempt status of the security;

 7.            Modifications to rights of securities holders;

 8.            Bond calls;

 9.            Defeasances;

10.           Release, substitution, or sale of property securing repayment of the securities;

            11.           Rating changes; and

12.           Failure to provide annual financial information as required.

 

Material events notices may be sent to CDINet by:

 

· internet

· fax or 

· paper 

 

Once a document has been accepted and processed by CDINet, it is broadcast to subscribers and made available in the MSIL public access facility electronically. 

 

Internet Submissions

CDINet accepts material events notices submitted over the Internet.  A submitter must register with CDINet by submitting a completed CDINet Web Authorization Form to:

 

Lydia Hodgson, MSIL Manager

Municipal Securities Rulemaking Board

1900 Duke Street, Suite 600

Alexandria, VA 22314

 

Once authorized, a submitter will receive a submitter ID and a PIN to make such submissions.   There is no registration fee or charge to submit such notices.  The following requirements must be met to submit material events notices successfully over the Internet:

 

· The modem submission must be in ASCII text (most word-processing softwares             

  include an export function that will convert a document to ASCII, or DOS text);

· The modem submission may be of any length; and

· The modem submission must be made between the hours of 8:00 a.m. to 5:00 p.m.

  Eastern Time.

 

Faxed and Paper Submissions

CDINet also accepts material events notices submitted by fax or on paper by U.S. Mail or other delivery service.  There is no charge to submitters for such submissions. While submitters are not required to submit a completed Material Event Notice Cover Sheet  with their notice, they are encouraged to do so for the benefit of those who will read their notices.  

 

The following points should be observed to submit a material event notice by fax or on paper successfully:

 

· Complete and submit the voluntary cover sheet  along with the notice;

· The submission may be of any length, but CDINet will broadcast only the first 25 pages

  plus the cover sheet to System subscribers. If the submission is longer than 25 pages,

  the entire document will be made available to subscribers at their request and

  expense;

· The submission must be made between the hours of 8:00 a.m. to 5:00 p.m. Eastern

  Time;

· Fax submissions should be sent to (703) 683-1930; and

· Paper submissions should be sent to CDINet, 1900 Duke St., Suite 600,

  Alexandria, VA 22314.

 

If you have any questions about CDINet, please contact:

Lydia Hodgson, MSIL Manager

Municipal Securities Rulemaking Board

1900 Duke Street, Suite 600

Alexandria, VA 22314

Telephone: (703) 797-6600

Fax (for inquiries only, not for submissions): (703) 797-6704

Email: lhodgson@msrb.org

 

Annual Financial Information

The Board has not been designated by SEC Rule 15c2-12 to receive annual financial information from issuers or their agents.  If you wish to disclose such information, you should send it to each of the nationally recognized municipal securities information repositories listed below and to any appropriate state information repository.